James River Coal Company announced that it intends to offer, subject to market conditions and other factors, USD125 million aggregate principal amount of convertible senior notes due 2015 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 as amended.

James River also intends to grant to the initial purchasers of the Notes an option to purchase up to an additional USD 18.75 million aggregate principal amount of the Notes solely to cover over-allotments, if any.

The Notes will be general unsecured senior obligations of James River, will pay interest semi-annually, and will be convertible during certain periods and under certain circumstances. Upon conversion, holders of the Notes will receive, at the election of James River, cash, shares of James River’s common stock or a combination of cash and shares of James River’s common stock. The interest rate, conversion rate and other terms are to be determined by negotiations between James River and the initial purchasers.